Citigroup won the bid for the $320 million Virginia College Building Authority deal on Thursday with a TIC of 3.037%.
Yields ranged from 0.13% with a 5% coupon in 2015 to 3.72% with a 4% coupon in 2034.
"Much of the competitive high-grade Virginia deals we have seen have gone at very aggressive levels," a trader in Virginia said.
The deal is rated Aa1 by Moody's Investors Service, and AA-plus by Standard & Poor's. The bonds are callable at par in 2024.
Bank of America Merrill Lynch won the bid for the $28 million of Virginia College Building Authority educational facilities revenue bonds Thursday. Yields ranged from 0.13% with a 5% coupon in 2015 to 2.60% with a 4% coupon in 2025. There is no call option. The deal is rated Aa1 by Moody's, and AA-plus by S&P.
"Prices are high especially for competitive deals and demand still seems to be very strong, from traditional buyer and retail," the trader in Virginia said. "I think competitive deals are getting very good levels when they go out for the bid."
A trader in Dallas said this year's light supply is causing new issuance to be priced more richly.
"One of the things that is causing deals to be priced high is low issuance," he said. "The 30-day visible supply right now is at $40 billion. I don't remember a time besides when there has been a holiday week when it has been that low."
Year-to-date issuance totals $86.75 billion compared to $122.72 billion at this point last year, according to data compiled by Ipreo and The Bond Buyer.
"Underwriters are paying big prices for new issue stuff," the trader in Dallas said.
In addition to the Virginia College deal, the trader in Dallas said the three Ohio deals that were auctioned Thursday morning will see interest.
The state of Ohio auctioned a total of $337.4 million of GO refunding bonds. JPMorgan Securities won the bid for $161.8 million of common schools GO refunding bonds. Yields ranged from 1.14% with a 5% coupon in 2018 to 2.37% with a 5% coupon in 2023.
JP Morgan also won $116 million of higher education GO refunding bonds. Yields ranged from 1.12% with a 5% coupon in 2018 to 2.49% with a 5% coupon in 2024.
Morgan Stanley & Co. won the bid for $59.6 million of infrastructure improvement GO refunding bonds. Yields ranged from 1.09% with a 5% coupon in 2018 to 2.50% with a 5% coupon in 2024. The bonds are not callable. The deal is rated Aa1 by Moody's and AA-plus by S&P.
Bank of America Merrill Lynch won the bid for $107.4 million of city of Milwaukee GO notes. Yields on $85.9 million of promissory notes ranged from 0.14% with a 5% coupon in 2015 to 2.53% with a 5% coupon in 2024.
Yields on $21.5 million of corporate purpose bonds ranged from 2.65% with a 4% coupon in 2025 to 3.375% at par in 2029. The bonds are callable at par in 2024 and are rated Aa3 by Moody's and AA by S&P.
There are no deals over $100 million scheduled in the negotiated market Thursday.
Municipal yields rose on the long-end, increasing two to four basis points for bonds maturing in 29 to 30 years and by one to three basis points for bonds maturing in 13 to 28 years.
Yields on maturities from 10 to 12 years rose as much as two basis points with a May implied one basis point roll, and yields for a nine year maturity grew by up to one basis point, with the same implied roll.
Treasuries were steady Thursday afternoon, with the 10-year benchmark and the two-year notes remaining unchanged from Wednesday's market close at 2.62% and 0.42%, respectively. The 30-year yields fell three basis points to 3.43%.
